INFLIGHT: SCORPIO WORLDWIDE Scorpio CEO calls on airlines to think long-term


Scorpio Worldwide CEO, Stuart McGuire tells Charlotte Turner how a demand for ‘connected products’ and those linked with health & wellbeing are driving sales in the air, but warns that some airlines need to take a more ‘responsible’ and ‘long-term’ approach to their partnerships to avoid some suppliers exiting the channel.


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hat do you believe has really influenced any adaptations/changes


to Scorpio’s portfolio within the last couple of years? What do customers want now? We have seen a lot of growth in connected products, having launched Aviator F-Series Smart watch in 2017 and have recently launched the Mark II version which is proving extremely popular on several airlines, including BA, KLM etc. This watch, retailing at around


$240, has all the features of a traditional quartz watch, coupled with the latest hi tech connected functions, linking to Apple and Android phones. It provides call alert, message


reading, heart rate monitor etc and reflects the growing trend among consumers for linkable products, to monitor lifestyle and health, as well as keep in touch through their wearable tech.


Who is buying on airlines now? What do we know about these passengers? Are they getting younger? Are they leisure or business travellers? More women or men? This is difficult to compartmentalise given the wide variety of airlines around the world. I would say a low- cost carrier like Ryanair or easyJet has a broad number of consumer groups and ages buying products, given their diverse passenger profiles. As they are already selling buy


onboard consumables, the barrier to the consumer is already broken down and there is a greater will to spend. Sales on board these airlines are strong. For the Middle East airlines, where transit passengers are important, we see good sales of branded goods, special offer goods and travel accessories, particularly targeted to the economy passenger. We have also seen extremely


FEBRUARY 2019


strong sales of Maserati watches in this area. We have seen good sales of ‘health’ products, such as those from the This Works brand (particularly on sleep aids). This again appears to be


particularly popular with economy passengers. Boutique fragrances such as Roja Parfums are selling well in the Middle East with retail prices $235 plus, and this space is growing.


What do you value in a good brand partner/concessionaire partner? We value customers who are interested in maximising sell out through long term partnerships with a balanced approach to risk/reward of advertising and promotion. We also are looking to increase the ability to offer off line sales.


Some suppliers responding to our Global Industry Survey made the claim that listing fees are seriously hampering sales and pushing some brands out of the market altogether. Do you think this is an unfair criticism? For sure airline sales in some areas are under pressure, as they suffer the same as other ‘bricks v clicks’ retailers. The inflight model is a tough one for suppliers, as the pipeline filling can be high, advertising and listing fees also, with no guarantee of sell out, and all stock sent back after delisting. It is not correct for airline or


concessionaire companies to try to claw back money lost in declining sales by increasing listing fees or advertising. This is only a short- term potential remedy and is not sustainable. Airlines provide good marketing


opportunities for brands who are keen to have their products in front of millions of travelling passengers. However, if the listing/advertising fees and sale or return risk is too


high compared to the potential sell out, brands simply will stop offering the products. Listing fees or advertising do not


need to be abolished, but need to represent a fair balance of risk/ reward for the supplier, through longer term partnerships, not short time gain. This responsible approach is crucial for the long-term growth of the inflight model. «


“It is not correct for airline or concessionaire companies to try to claw back money lost in declining sales by increasing listing fees or advertising. This is only a short-term potential remedy and is not sustainable.”


Stuart McGuire, CEO, Scorpio Worldwide


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Above: Aviator Mark II Smart Watch with heart rate display.


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